Last week, foodpanda Singapore announced an exclusive partnership with DFI Retail Group and yuu Rewards Club, focusing on delivering a fast, fresh, and convenient grocery shopping experience to customers. This collaboration promises deliveries within an hour for its users.
Under this new partnership, foodpanda users now have access to a vast selection of nearly 20,000 products from popular brands like Cold Storage, CS Fresh, and Giant, all of which are under the DFI Retail Group umbrella. DFI Retail Group operates a network of 100 Cold Storage, CS Fresh, and Giant outlets across Singapore. Notably, the prices and promotions offered on the foodpanda app are identical to those available in-store.
Additionally, foodpanda users can maximize their savings by joining the yuu Rewards Club. They can earn yuu points for their transactions on foodpanda, at a rate of S$1 for one yuu point, which can be redeemed for foodpanda vouchers. This partnership essentially offers yuu members a faster way to accumulate points, thanks to the extensive network of over 20,000 restaurants and merchants in Singapore that participate in the program.
Furthermore, pandapro users can enjoy free delivery on orders with a minimum spend of S$35, while regular foodpanda users will be charged a S$1.99 delivery fee for orders with a minimum spend of S$30.
Kevin Zagolin, Director of Quick Commerce at foodpanda Singapore, highlighted the company’s commitment to enhancing value and convenience for users. He expressed the aspiration to extend these benefits beyond just food and into the grocery sector through this partnership, leveraging the unique strengths of each company.
“We want to positively disrupt the grocery [shopping] experience, and we decided to do it in a partnership format, rather than by ourselves,” said Zagolin.
foodpanda’s promise to deliver groceries within one hour has raised questions about feasibility, especially during peak periods and with larger orders. Zagolin explained that the delivery mode depends on the order’s weight or value, with smaller orders transported by bicycles, motorbikes, or on foot, while larger orders are delivered by cars. He also emphasized the efficiency of their operations, where ordering, picking, and packing processes occur simultaneously. This, combined with an extensive network of stores across Singapore, enables foodpanda to fulfill orders within the hour, except in cases of factors like extreme weather or road conditions.
Yoep Man, Managing Director for Food, Singapore, DFI Retail Group, emphasized their ability to predict demand in offline stores and understand customer behavior better, allowing them to adjust their supply chain accordingly.
foodpanda’s quick commerce (q-commerce) business started during the COVID-19 pandemic and has evolved over time to accommodate larger orders and engage with prominent retailers. According to Lawrence Wen, CEO of foodpanda Singapore, customers’ changing grocery shopping habits have driven this evolution.
As they continue to adapt, foodpanda is also integrating Artificial Intelligence (AI) and Machine Learning (ML) into their operations to improve user experiences. AI helps predict user preferences and behaviors, enabling foodpanda to offer tailored content to its users. Sustainability remains important to foodpanda, with one in five of its deliveries made using zero to low-carbon emission vehicles.
In the next six to 12 months, foodpanda’s quick commerce team plans to enhance the experience for the recently onboarded brands, with a focus on app-related enhancements to personalize the user shopping experience.